Accounting Software for RTM Company

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    Accounting Software for RTM Company

    As we will be running the company on a shoestring, I was wondering if there is a piece of software we could use to produce our annual accounts for submission to Companies House.

    There won't be much activity to account for, so it seems pointless to hire an accountant to do the accounts when we won't be able to recover the fees from anybody.

    So, is there a piece of software we can use for this?

    #2
    RTM should (probably) submit dormant accounts.

    I'd be more concerned about the service charge accounting.

    Comment


      #3
      Originally posted by MCPH View Post
      RTM should (probably) submit dormant accounts.

      I'd be more concerned about the service charge accounting.

      Dormant companies are inactive companies, so I'm afraid you're wrong there.

      Service charges are going to be limited to the actual expenditure and can be produced in any format whatsoever.

      As indicated in my post, I am concerned with the company's annual accounts to be submitted to Companies House.

      Comment


        #4
        Dormant companies are widely used but it is wrong, as while the basic filing fee or cost of a dormant return will let you be dormant, the RTM is liable for the entire service charge in the same way as a landlord.

        As long as the lease allows the recovery of the SC certification you could ask an accountant to produce a simple I & E account which breaks down turnover into SC I & E and RTM I & E, and split the accountancy costs between them. He then expands on both I & E, and certificates SC as the lease requires and if it can be recovered under the 85 Act.

        IN fact a word in the ear of small company and they will likley do the company account for a notional amount, but keep them separate!
        Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

        Comment


          #5
          The best way is to form a Residents Association for the block of flats and let the RTM company appoint the RA Chairman as the managing agent. This will allow the RTM Company to remain dormant company and simplefy the annual accounting returns required by Companies House. The annual audited service charge accounts can be produced separate from the RTM company account.

          See Arma recommendation on "service charge accounting" for RTM and RMC

          http://www.arma.org.uk/doc/public/LA...-26-10-11-.pdf

          Comment


            #6
            Rubbish.

            The RA is only an agent-a manager of the money- the RTM still has the financial liability of the SC expenses.
            Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

            Comment


              #7
              The service charges do not form part of the I&E of the RTM in the same ad they don't for any LL. So how is it that an RTM is anything but dormant?

              Comment


                #8
                Originally posted by MCPH View Post
                The service charges do not form part of the I&E of the RTM in the same ad they don't for any LL. So how is it that an RTM is anything but dormant?
                Thats a common misapprehension- an RTM or landlord incur expenses as a landlord and recover them. While some have in advance payments some are in arrears and some leases have indemnities. but at any time the amount a landlord can recover can fall short

                Whose then is the expenditure.....

                Don't forget the law only requires the income to be held in trust, the expenditure is theirs.


                Scenario a company files as dormant and then the next year having lost an LVT case, they have to report a huge loss and are insolvent or have to call on members to voluntarily pay. That's several breaches of the Companies Act.
                Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

                Comment


                  #9
                  Originally posted by MCPH View Post
                  The service charges do not form part of the I&E of the RTM in the same ad they don't for any LL. So how is it that an RTM is anything but dormant?
                  The Lease is a legal contract which requires the leaseholders to pay service charge to the lessor/freeholder. The RTM company incorporated under the 2002 Act has the "legal right" to claim the administration duties under the lease and managing the service charge account from the freeholder and its agent.

                  The RTM company does not trade for profit with outside parties and makes no profit from the service charge account, and therefore has no reportable income. Since RTM has no reportable income, it falls under the Companies House definition of "dormant company" and so , it can submit annual returns as a "dormant company".

                  The RTM company is usually a company limited by guarantee which I think is one pound per member. So nobody will see any gain from sueing a guarantee company if one pound per flat is the maximum claimable.

                  For information on residents association see

                  http://www.fpra.org.uk/

                  Comment


                    #10
                    No an RTM CO has to be limited by guarantee.

                    Again the definition of dormant is no significant transactions,and it has significant income, held in trust, as well as the

                    An RA is no more than an agent in this scenario and therefore it is irrelevant.

                    It is nothing to with profit.
                    Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

                    Comment


                      #11
                      Perplexed ,

                      So, have we answered your question ?

                      Comment


                        #12
                        Originally posted by leaseholdanswers View Post
                        No an RTM CO has to be limited by guarantee.

                        Again the definition of dormant is no significant transactions,and it has significant income, held in trust, as well as the

                        An RA is no more than an agent in this scenario and therefore it is irrelevant.

                        It is nothing to with profit.
                        Sorry I am just sick to death of Fire-foxes updates and auto correct into gibberish.


                        No an RTM CO has to be limited by guarantee.

                        Again the definition of dormant is no significant transactions,and it has significant income, held in trust, as well as the expenditure, even if held in an agents client account.

                        An RA is no more than an agent in this scenario and therefore it is irrelevant.

                        It has nothing to with profit.
                        Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

                        Comment

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